Kmart to sell up to 24 stores to Home Depot

<p>Kmart will sell as many as 24 stores to Home Depot for up to $365 million, the discount retailer announced Friday. Its shares surged 14 percent.</p><p>The exact number of stores, their locations, and the final purchase price will be determined in the next 60 days.</p><p>"We will take advantage of opportunities to create value that include the sale of existing stores, or the acquisition of new stores and businesses," Julian C. Day, president and chief executive of Kmart Holding Corp., said in a statement.</p><p>But Day denied speculation that Kmart would focus on real estate deals to the detriment of its core retail business.</p><p>"The reality is that we're taking action on many different fronts simultaneously, all with the goal of making Kmart a great retail company once again," he said.</p><p>At Kmart's annual shareholder meeting last month, chairman and majority shareholder Edward Lampert said the retailer would continue to consider offers for its stores on a case-by-case basis. He cited a recent case when Kohl's Corp. was willing to pay a hefty premium for Kmart properties in particular California locations. Kmart took the offer because it was "better than we could do than by operating them" as stores, Lampert said.</p><p>Troy-based Kmart emerged from bankruptcy in 2003 with about 1,500 stores _ 600 less than before. The discounter has posted a profit in the two most recent quarters and won praise for its financial turnaround. But sales have continued to drop.</p><p>Atlanta-based Home Depot is the nation's largest home improvement retailer with 1,740 stores.</p><p>Kmart shares were up $7.67, or 14 percent, to close at $62.53 Friday on the Nasdaq Stock Market, while Home Depot shares fell 15 cents to close at $35.33 on the New York Stock Exchange.</p><p>___</p><p>On the Net:</p><p>HASH(0x2865658)</p><p>HASH(0x1ab74b4)</p>

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